Can You Buy A Home If You Switch Jobs?
If your are in the process of buying a home right now?
What Lenders Look For
There are a number of components lenders look for when assessing a home loan application. Work history, and pay are some of the two biggest factors ahead of your debt to income ratio, that lenders review before providing you a pre-qualification letter for the home loan. A new position might be a decent professional move, but in the event that you intend to purchase a home this year, realize that switching jobs can be a warning to certain underwriters, and particularly if you’re moving to a different industry.
A stable employment history with few to no gaps in the course of at least 2 years are optimal, as it helps loan specialists effectively figure out your future salary.
Are There Options?
If you happen to land a new job while shopping for a new home, let your lender know as soon as possible. Now that does not mean you will not be able to qualify for a home loan. But just be prepared to show extra documentation.
If by chance you are moving from a commissioned or hourly job to on that will pay salary with equal or more compensation. That may help your chances with the loan application. Loan specialists prefer borrowers to have a steady source of income. So this is not to say; don’t go out and get another job. Especially if it is a promotion and more of a lateral move. This is just simple advice for people considering switching occupations while looking to buy a home.